/EGBs-GILTS: A reprieve of sorts in....>

BOND SUMMARY: /EGBs-GILTS: A reprieve of sorts in the U.S.-China trade conflict

has softened the tone for core EGBs/Gilts early Tuesday.

- Risk-off overnight when U.S. labelled China a currency manipulator; but global

FI and equities turned around after China made moves to stabilise CNY.

- Italy's Salvini won a key vote in Parliament last night; Italy/German 10-Yr

spread 2.6bps tighter at 205.5bps though had gone as tight as 202.1bps early.

- Little reac to German Jun Factory Orders much higher than expected (2.5% M/M

vs 0.2% MNI Median); also little reac to weak UK Jun like-for-like retail sales.

- Euribor strip flat; Short Stg off 1.5-2.0 ticks. Latest bond futures prices:

* Sep Bund futures (RX) up 16 ticks at 176.38 (L: 176.12 / H: 176.71)

* Sep BTP futures (IK) up 24 ticks at 139.9 (L: 139.8 / H: 140.31)

* Sep OAT futures (OA) up 23 ticks at 168.15 (L: 167.93 / H: 168.24)

* Sep Gilt futures (G) down 17 ticks at 133.93 (L: 133.86 / H: 134.2)